Warehouse conversion in inner Melbourne sells for $985,000, another listed for $2.1 million

A converted warehouse in Melbourne’s inner-city suburb of Fitzroy North has has sold to an investor for $985,000, while another awaits a buyer.

The sale of the property at 1 Bik Lane reflects a yield of 3.3%.

Known as Unit 1, the property comprises loft style offices that are currently tenanted by Media World Pty Ltd on a three-year lease with a three-year option. The current passing rental income is $32,240 net.

The selling agent was Gray Johnson’s Rory White.

The strata titled Lot 1 has a building area of 130 sqm on a site area of 160 sqm, which translates to a selling rate of $7,500 per square metre of building area, according to White.

Still available for sale with an expected sale price at $2.1 million is the larger of the two warehouses. 

It has a floor area of 400 sqm over two levels, and includes polished concrete floors, lofty ceilings and exposed timber trusses. 

The vendor, an advertising and marketing agency, currently occupies this space as a combination of open plan work areas, meeting rooms and private offices but is offering vacant possession on a six months settlement.

This property could be converted to residential or for a continued boutique office occupancy.

“Interested parties should consider the potential of Unit 2 as an investment, for owner-occupancy, or the scope to value add, or redevelop subject to the necessary permits,” White said.